Lot of New Office spaces are being constructed on the other side and Omicron is hitting hard again. In this scenario, whats the future of Office Spaces in India as well as Hyderabad. Here is the latest survey details by CBRE.
About 88% of our survey respondents believe business conditions are currently improving in the country, marking substantial progress from the survey CBRE conducted post the first wave in 2020. Moreover, sentiments regarding this improvement are slightly stronger in India as compared to APAC where 71% of respondents highlighted the same.
• It is to be noted that none of the respondents chose ‘contracting’ as a way to describe their current business conditions in India.
• 62% indicated they would expand their portfolios over the next two years.
• The average office utilization rate in India was less than 25% in Jun-Aug 2021, with the pace of return to work varying across the country.
• About 58% of respondents in India plan to implement policies allowing office-based working with the option of working from home – as compared to only 47% in APAC.
• At least 1-4 days / month to be the preferred hybrid work format in India in the long run
• 42% of respondents in India would require hybrid working eligibility to be determined by managers and pre-approved by the company as compared to 30% in APAC.
• 93% plan to include flexible spaces in their portfolios two years from now.
• Renewals (49%), renegotiations (44%) and flexible terms (29%) are the top preferred short-term leasing strategies.
• Touchless technologies (82%), improved air quality (76%) and more collaborative spaces (57%) imperative in the future.
• Almost 60% of respondents would continue to provide 75-125 sq. ft. per capita even after two years.
Key Future Office Trends
Hybrid working
Business leaders have a strong desire to bring employees back to the office but at the same time are willing to offer a greater degree of flexibility and choice. Several organizations are currently conducting pilot studies into the feasibility of hybrid working before they commit to large-scale implementation. Most companies would offer frequent or infrequent hybrid working options to mainly 25% of the workforce in India in the long run.
CBRE cites that clear guidelines should govern hybrid work eligibility and approvals. Going forward, this governance would be more stringent in India as compared to other APAC regions.
Portfolio growth and agility
Physical office is still a requirement for most employees. Hence, most occupiers intend to expand portfolios over the next two years. New ‘core+flex’ strategies are emerging amidst portfolio expansion and hybrid working. Increased use of flexible spaces and consolidation are top short-term portfolio strategies. As the flexible space industry continues to evolve to meet occupier requirements, a broader offering, ranging from on-demand meeting space to customized private suites, is becoming available.
Workplace strategies:
Workplace strategies are being fundamentally reset to allow for a more hybrid workforce by adding collaborative and tech-enhanced spaces. About half of the respondents would increase their staff-to-desk-sharing ratios in the next two years. Targeted mobility and activity-based working would be top seating preferences. The financial obligations, compliance, employee engagement and liability considerations of a hybrid work program must be weighed.
The future role of the office
The advent of hybrid working would change the future role of the office as a center for employee collaboration.
The future role of the office is evolving to ensure the safety, wellness, productivity and engagement of a more distributed workforce. The workplace would be more effective for employee engagement, collaboration and team productivity. Health & wellness and safety continue to be key priorities for occupiers in India as a majority of the respondents would be implementing more touchless technologies as well as HVAC solutions.
